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AFFILIATE MARKETING GUIDE Author:Mariliis Uibomae 2013

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Page 1: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

AFFILIATE MARKETING GUIDE

Author:Mariliis Uibomae

2013

Page 2: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

What is affiliate marketing?

Affiliate marketing is a type of performance-based marketing in which a business rewards one

or more affiliates for each visitor or customer brought about by the affiliate's own marketing

efforts. The industry has four core players: the merchant (also known as 'retailer' or 'brand'),

the network (that contains offers for the affiliate to choose from and also takes care of the

payments), the publisher (also known as 'the affiliate'), and the customer.

Affiliates often use regular advertising methods like organic search engine optimization (SEO),

paid search engine marketing (PPC - Pay Per Click), e-mail marketing, SMS marketing, Social

media marketing, telesales and in some sense display advertising, publishing reviews of

products or services offered by a partner.

Eighty percent of affiliate programs today use revenue sharing or pay per sale (PPS) as a

compensation method, nineteen percent use cost per action (CPA), and the remaining

programs use other methods such as cost per click (CPC) or cost per mile (CPM).

Cost per mille requires only that the publisher make the advertising available on his website

and display it to his visitors in order to receive a commission. Pay per click requires one

additional step in the conversion process to generate revenue for the publisher: A visitor must

not only be made aware of the advertisement, but must also click on the advertisement to visit

the advertiser's website. Cost per click was more common in the early days of affiliate

marketing, but has diminished in use over time due to click fraud issues very similar to the click

fraud issues modern search engines are facing today. Cost per action/sale methods require that

referred visitors do more than visit the advertiser's website before the affiliate receives

commission. The advertiser must convert that visitor first. It is in the best interest for the

affiliate to send the most closely targeted traffic to the advertiser as possible to increase the

chance of a conversion. The risk and loss is shared between the affiliate and the advertiser.

An affiliate network acts as an intermediary between publishers (affiliates) and merchant

affiliate programs. It allows website publishers to more easily find and participate in affiliate

programs which are suitable for their website (and thus generate income from those

programs), and allows websites offering affiliate programs (typically online merchants) to reach

a larger audience by promoting their affiliate programs to all of the publishers participating in

the affiliate network. Affiliate network services and benefits may include tracking technology,

reporting tools, payment processing, and access to a large base of publishers. For affiliates,

services and benefits can include simplifying the process of registering for one or more

merchant affiliate programs, reporting tools, and payment aggregation.

Page 3: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

How affiliates choose merchants?

As there are thousands upon thousands of affiliate programs offered by various Internet merchants there are several things that affiliates consider before joining the programs.

First and foremost, affiliates consider site visitors’ propensity to purchase the product or service or take the ‘desired action’ (filling out a lead form, download trading platform etc.). The greatest factor here is the attractiveness of the merchant’s site and offer, but also ability to properly pre-sell the product or service and interest in doing so. For that merchant has to provide good creative materials as well.

Second thing affiliates looks is the affiliate agreement either on the site or affiliate network. Affiliate agreement is very important as it notes out all the way how merchant can be promoted and what is prohibited.

Third affiliates compare the earning potential by the commission amount, action needed, EPC, conversion rate and CTR. A program that pays $5 per lead may be far more attractive than one offering an average commission of $25 per sale. Using this example, if 10 out of 100 referrals submit a lead form, affiliate will earn $50, with an effective EPC of $.50. If just one in 100 of referrals make a purchase, affiliate earns $25 with an effective EPC of $.25. Next affiliates consider the volume of click-trough’s, which is not part of the EPC measurement. In other words, if very few of affiliate site visitors click on the lead campaign and many more click on the per sale campaign, you could end up earning more total commission on the per sale campaign, even though it does not convert as well.

Forth important thing affiliates look is cookie lifetime. Cookie lifetime refers to the length of time a cookie is set on referral’s computer to allow affiliate to earn commissions even if the referral returns directly to the merchant’s site. The importance of return days will depend on the length of time a customer typically takes to decide to purchase a particular product. As a general rule programs cookie lifetime minimum is 30 days. If the cookie lifetime is long an affiliate could be compensated for future purchases – for example repeated sales.

Fifth affiliates look very closely is the leakage. Leakage is how often there are problems/difficulties with tracking conversions and affiliate does not get commissions. For example:

Phone Orders and other tracking issues – orders by phone are not tracked etc

Participation of Parasite Affiliates – parasites are affiliates who will intercept your referrals and claim the commissions for themselves.

Payment problems - merchants who do not pay as they have promised or are very slow payers.

Page 4: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

Not less important is affiliate program management and support that affiliate needs to promote this merchant. Best is to provide full contact information for an individual affiliates can reach with your questions or comments. Generic affiliate email is also an option, but does not give such trustworthiness. In the worst case affiliate request are handled by customer service - affiliates find this unresponsive to their inquiries.

Last, but not less important is reporting – it is important that affiliate is able toview his performance in real time or at least updated daily.

Page 5: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

How merchants choose affiliate networks?

There are a few important things to keep in mind when selecting a network:

Cost to the merchant – how much fees they take? Do they have set up fees, transactions fees, monthly fees, fixed threshold as a fee?

Number of active affiliates – how many affiliates network has and do they have websites in your field – finance websites for example. How many affiliates are active in the network?

Specific industries a network focuses on or has success in – is the network specialized in one sector or has wide range of different affiliates on broad?

The services and support provided to the merchant - Are they offering a lot of support and ideas how to expand further? Are the account managers skilled enough? How flexible are they offering customized service?

The acceptable methods of promotions by affiliates–Do they accept incentive traffic?

Types of programs they specialize in - Pay Per Lead, Pay Per Sale, Co-Registration

Brand reach – are they promoting their selves in popular affiliate hiring sites? Do they have big

companies on board?

Brand review – Are the reviews good or bad? Do they talk about non-payment or other serious

issues? How fast are the payments to affiliates? What famous or popular bloggers have blogged

about those networks?Do affiliates like this network in general?

Tracking Sophistication - Reliable and honest tracking through the network should be always

provided. The latest tracking technologies should be in place, and detailed reporting should be

available to both you (the merchant), and the affiliates (the publishers) of the network. In

addition to basic transaction reports, each network has their own unique reporting features,

including performance by link type and affiliate first sale reports.

Fraud Protection - What kind of safeguards does the affiliate network have in place to protect

both merchants and publishers from fraud? This is something that should especially be a

concern if you choose to go with a CPC (cost-per-click) model.

Affiliate Program Promotion -After you sign up as a merchant, what will affiliate network do to

get the word out about the program to its publishers? Will it include your program in its

newsletter and e-mailings, place a link on its website, issue a press release, or promote as a

"client" on a merchant list on their website?

Page 6: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

Types of affiliate websites

Affiliate websites are often categorized by merchants (advertisers) and affiliate networks.

Search affiliates that utilize pay per click search engines to promote the advertisers'

offers (i.e., search arbitrage)

Comparison shopping websites and directories

Loyalty websites, typically characterized by providing a reward system for purchases via

points back, cash back

CRM sites that offer charitable donations

Coupon and rebate websites that focus on sales promotions

Content and niche market websites, including product review sites

Personal websites

Weblogs and website syndication feeds

E-mail list affiliates (i.e., owners of large opt-in -mail lists that typically employ e-mail

drip marketing) and newsletter list affiliates, which are typically more content-heavy

Registration path or co-registration affiliates who include offers from other merchants

during the registration process on their own website

Shopping directories that list merchants by categories without providing coupons, price

comparisons, or other features based on information that changes frequently, thus

requiring continual updates

Cost per action networks (i.e., top-tier affiliates) that expose offers from the advertiser

with which they are affiliated to their own network of affiliates

Websites using adbars (e.g. Adsense) to display context-sensitive, highly relevant ads for

products on the site

Virtual Currency: a new type of publisher that utilizes the social media space to couple

an advertiser's offer with a handout of "virtual currency" in a game or virtual platform.

Video Blog: Video content that allows viewers to click on and purchase products related

to the video's subject.

File-Sharing: Web sites that host directories of music, movies, games and other

software.

Page 7: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

Promotional materials(in different languages) that can be offered to affiliates:

Banners: jpeg, gif, png

Banners: flash

Banners: text

Banners: rotating

Landing Pages/Microsites

Corporate seals/teasers

Brand Products

Certificates

Widgets/Informers

Avatars

Videos & Tutorials

Articles & Reviews

Mailers: html

Online classes/Edu Materials

News feed

RSS feed

Booklets

Datafeed

Page 8: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

Affiliate performance tracking and statistics

The methods of tracking affiliate conversions continue to evolve as the internet constantly

changes and advances. The most common method today is Cookie tracking so it will be

discussed in most detail.

Common tracking methods include:

Cookie Tracking

Simple Direct URL Links

URL Query String Tracking

Self-Replicated Pages

Sub Domain Tracking

Database Record Match Tracking

Cookie Tracking

Cookie Tracking is the most popular method to track web visitors "from click through to

conversion", because it is simple to implement and use, requires no significant web design

considerations, and rarely does it impact the performance of the web server. With this method

a 3rd-party affiliate software program can be installed as a stand-alone product requiring

minimal changes to your existing web site.

Affiliates place the merchant's affiliate links on their web site. The affiliate link defines the

Affiliate ID within the link. The web visitor clicks the link and is sent to the affiliate tracking

software. The affiliate tracking software plants a small text file or "cookie" on the web visitor's

browser. This cookie stores the Affiliate ID. It may also store other information such as the

date/time for purposes of tracking how much time elapsed between the click and the

conversion. It may also track the specific banner or link that the web visitor clicked. The cookie

is also assigned a date as to when it should expire and get deleted.

After planting the cookie, the web visitor is then redirected to the page that was defined for the

specific banner or link that was clicked. It could be the homepage of the merchant's web site,

or a specific product or information page.

As the web visitor traverses the merchant's site, the cookie remains untouched and continues

to hold the Affiliate ID. The cookie is retained for the "cookie expiration period" as defined in

your affiliate tracking software. The beauty of this is you can still track a conversion even if it

happens days or weeks after the first visit. You can also track repeat sales from the web visitor.

Page 9: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

However long it takes for the web visitor to make a purchase, as long as it occurs before the

cookie expiration period, the sale will be properly credited to the affiliate. The only way this

method fails is if the web visitor has disabled cookies, uses cookie-blocking software, or

manually deletes their cookies before the conversion. Those users who go through the trouble

to disable cookies are, oftentimes, the same users who will probably be wary of other tracking

methods and have learned to intentionally bypass those as well. The great benefit is

conversions can be tracked over a relatively long period of time.

In summary, cookies make tracking affiliate-referred-sales very convenient. The cookie can be

read and used on any page or on any form, and can be used in conjunction with almost any

ordering system. Plus, the cookie that records the affiliate's ID can "live" for as long as the

merchant desires, allowing affiliates to get credit for customers who clicked on a link weeks, or

months, before finally purchasing or making a repeat purchase.Cookie Tracking is essentially

invisible to the user, because cookies are written and read "behind the scenes". Unlike the

other methods, the merchant's URL does not need to display the affiliate ID.

Simple Direct URL Links

A direct link to a web site is the most basic form of tracking. While this may help boost search

engine popularity, it is one of the most limited methods of tracking affiliate conversions. This

method often requires placing special tracking code or coded scripts on each page that will be

directly linked to. The Affiliate ID is also visible directly in the tracking links. Typically this

method only tracks sales made during the immediate "session" and does not track repeat sales,

or sales that are not made on the first visit. Unless the affiliate returns using the same link that

passes the Affiliate ID, the conversion will not be tracked.

URL Query String Tracking

URL Tracking is a relatively effective, yet programmatically involved, tracking method that

passes the affiliate ID throughout the merchant's entire website. The Affiliate ID is visible to the

web visitor and follows them throughout the merchant's web site by being passed from one

page to the next in the URL Query String. The URL Query String is visible in the address bar of

the browser and appears after the question mark. For example,

http://www.somedomain.com?AffiliateID=98776.

To accomplish this method of tracking, your web pages must be dynamic and a programmer

must program each and every page to capture and pass the Affiliate ID in the query string. This

can be accomplished using programming languages such as ASP, Perl, CGI, or Javascript. The

code basically reads the current URL, extracts the affiliate ID, then appends the Affiliate ID to

the query string of the next page that is requested.

Page 10: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

This method, though fairly effective, is a bit fragile and cumbersome, as it requires careful

design of the website and maintenance of every link within the merchant's site. Moreover,

under heavy traffic, the script can become a "bottleneck" to the merchant's web site.

Furthermore, if the script ever fails, the merchant's site will fail.

Self-Replicated Pages

Self-Replicated Pages (SRP's), offers the affiliate a replicated copy of the merchants web site. It

could be as simple as one page, or as much as an entire replica of the site. These pages are

then used exclusively by the web visitors sent from the affiliate's web site. Tracking is easy

because all sales made from this replica are attributed to the affiliate for whom the replica was

created. This type of affiliate tracking is typically built in to the merchant's shopping cart

system rather than as a stand-alone affiliate tracking software solution.

While this method may sound great, there is a major drawback. This method was once popular

but is now frowned upon in the affiliate marketing industry. The reason is popular search

engines such as Google often penalize sites for replicating identical content. This reason alone

has greatly diminished the use of this method.

Sub Domain Tracking

Sub Domain Tracking is very similar to Self-Replicated Pages, in that it provides an affiliate with

a full URL to which the affiliate can direct customers. Unlike Self Replicated Pages, though, this

method gives affiliates an actual sub domain at the merchant's site, not a simple directory path

found at the merchant's main domain. Just as in the method of self-replicated pages, this

method results in duplicated content and again you risk having your organic search engine

listings penalized for duplicate content.

Database Record Matching

Database record matching (also called "lifetime affiliate tracking") is the least used of the

methods because it is difficult to operate and maintain, and must be used in conjunction with

at least one of the other tracking methods; it cannot be used alone. Database Record Matching

rewards affiliates for returning customers, not new customers. The initial sale must employ

some other form of referral tracking, and then store unique contact information about each

customer (their email address, name and address, credit card number, etc), along with the

referring affiliate's ID. When that customer returns and buys again in the future, the customer

database can be searched to find that the customer is "owned" by an affiliate. This affiliate will

receive commissions on that customer's repeat purchases for the life of the system

Page 11: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

Affiliate marketing Glossary

-A-

A/B testing – a method in marketing research where variables in a control scenario are

changed and the ensuing alternate strategies tested, in order to improve the

effectiveness of the final marketing strategy.

above the fold – the section of a Web page that is visible without scrolling.

ad blocking – the blocking of Web advertisements, typically the image in graphical Web

advertisements.

ad space – the space on a Web page available for advertisements.

AdSense – a text-based advertisement service provided by Google.com.

advertising network – a network representing many Web sites in selling advertising,

allowing advertising buyers to reach broad audiences relatively easily through run-of-

category and run-of-network buys.

affiliate – the publisher/salesperson in an affiliate marketing relationship.

affiliate directory – a categorized listing of affiliate programs.

affiliate forum – an online community where visitors may read and post topics related to

affiliate marketing.

affiliate fraud – bogus activity generated by an affiliate in an attempt to generate

illegitimate, unearned revenue.

affiliate marketing – revenue sharing between online advertisers/merchants and online

publishers/salespeople, whereby compensation is based on performance measures,

typically in the form of sales, clicks, registrations, or a hybrid model.

affiliate merchant – the advertiser in an affiliate marketing relationship.

affiliate network – a value-added intermediary providing services, including aggregation,

for affiliate merchants and affiliates.

affiliate software – software that, at a minimum, provides tracking and reporting of

commission-triggering actions (sales, registrations, or clicks) from affiliate links.

ALT text – HTML attribute that provides alternative text when non-textual elements,

typically images, cannot be displayed.

animated GIF – a graphic in the GIF89a file format that creates the effect of animation

by rotating through a series of static images.

anonymous FTP – an option in FTP that allows users to download files without having to

establish and account.

autoresponder – a program that sends an automatic form response to incoming emails.

-B-

B2B – business that sells products or provides services to other businesses.

B2C – business that sells products or providse services to the end-user consumers.

Page 12: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

banner ad – a graphical web advertising unit, typically measuring 468 pixels wide and 60

pixels tall (i.e. 468×60).

banner blindness – the tendency of web visitors to ignore banner ads, even when the

banner ads contain information visitors are actively looking for.

banner exchange – network where participating sites display banner ads in exchange for

credits which are converted (using a predetermined exchange rate) into ads to be

displayed on other sites.

barter – to exchange goods or services directly without the use of money.

beyond the banner – online advertising not involving standard GIF and JPEG banner ads.

blog – A frequent, chronological publication of personal thoughts and Web links.

blogger – 1. a person who publishes content on the web using a blog 2. a blog service

powered by Google.com

blogosphere – the community of blogs and everything else related to them.

blogroll – a section of a blog page that contains a list of links to recommended blog sites.

bookmark – a link stored in a Web browser for future reference.

bounce rate – 1.) In web analytics, the percentage of visitors who leave after viewing a

single page. 2.) In email marketing, the percentage of emails in a campaign that are

undeliverable.

button ad – a graphical advertising unit, smaller than a banner ad.

button exchange – network where participating sites display button ads in exchange for

credits which are converted (using a predetermined exchange rate) into ads to be

displayed on other sites.

buzzword – a trendy word or phrase that is used more to impress than explain.

-C-

caching – the storage of Web files for later re-use at a point more quickly accessed by

the end user.

call to action (CTA) – the part of a marketing message that attempts to persuade a

person to perform a desired action.

cascading style sheets (CSS) – a data format used to separate style from structure on

Web pages.

click-through – the process of clicking through an online advertisement to the

advertiser’s destination.

click-through rate (CTR) – The average number of click-throughs per hundred ad

impressions, expressed as a percentage.

comment spam – irrelevant comments posted to a blog for the sole purpose of dropping

a link to the spammer’s website.

contextual advertising – a method of serving advertisements based on the content (i.e.,

overall context or theme) of a web page.

conversion rate – the percentage of visitors who take a desired action.

Page 13: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

cookie – information stored on a user’s computer by a Web site so preferences are

remembered on future requests.

cost-per-action (CPA) – online advertising payment model in which payment is based

solely on qualifying actions such as sales or registrations.

cost per click (CPC) – the cost or cost-equivalent paid per click-through.

CPM – cost per thousand impressions.

customer acquisition cost – the cost associated with acquiring a new customer.

-D-

dedicated IP – an IP address dedicated to a single website.

deep linking – linking to a web page other than a site’s home page.

description tag – an HTML tag used by Web page authors to provide a description for

search engine listings.

disintermediation – the elimination of intermediaries in the supply chain, also referred

to as "cutting out the middlemen."

domain name – location of an entity on the Internet.

doorway domain – a domain used specifically to rank well in search engines for

particular keywords, serving as an entry point through which visitors pass to the main

domain.

doorway page – a page made specifically to rank well in search engines for particular

keywords, serving as an entry point through which visitors pass to the main content.

-E-

email – the transmission of computer-based messages over telecommunication

technology.

email marketing – the promotion of products or services via email.

email spam – unwanted, unsolicited email.

exclusivity – contract term in which one party grants another party sole rights with

regard to a particular business function.

ezine – an electronic magazine, whether delivered via a Web site or an email newsletter.

ezine directory – directory of electronic magazines, typically of the email variety.

-F-

favicon – a small icon that is used by some browsers to identify a bookmarked Web site

FFA – free-for-all links list, where there are no qualifications for adding a link.

Page 14: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

Flash – multimedia technology developed by Macromedia to allow much interactivity to

fit in a relatively small file size.

forum – an online community where visitors may read and post topics of common

interest.

frames – a structure that allows for the dividing of a Web page into two or more

independent parts.

freemium – a technique where a business offers a free basic product, giving the

customer an option to use an advanced version for a premium cost.

frequency cap – restriction on the amount of times a specific visitor is shown a

particular advertisement.

-G-

geo-targeting – a method of detecting a website visitor’s location to serve location-

based content or advertisements.

Google Instant – a feature of Google’s search engine that shows search results as the

keyword query is being typed.

guerilla marketing – unconventional marketing intended to get maximum results from

minimal resources

guest blogging – writing a blog post to be published on another blog as a temporary

featured author.

-H-

heatmap – a graphical representation of data where varying degrees of a single metric

are shown using colors.

hit – request of a file from a Web server.

home page – the main page of a Web site.

house ad – self-promotional ad a company runs on their own site/network to use unsold

inventory.

HTML banner – a banner ad using HTML elements, often including interactive forms

instead of (or in addition to) standard graphical elements.

HTML email – email that is formatted using Hypertext Markup Language, as opposed to

plain text email.

hybrid model – a combination of two or more online marketing payment models

-I-

impression – a single instance of an online advertisement being displayed.

inbound link – a link from a site outside of your site.

Page 15: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

inbound marketing – a marketing model whose sales performance relies on the initiative

of its client base to find and purchase a product.

incentivized traffic – visitors who have received some form of compensation for visiting

a site.

interstitial – an advertisement that loads between two content pages.

invisible Web – the portion of the Web not indexed by search engines.

-J-

JavaScript – a scripting language developed by Netscape and used to create interactive

Web sites.

-K-

keyword – a word used in a performing a search.

keyword density – keywords as a percentage of indexable text words.

keyword marketing – putting your message in front of people who are searching using

particular keywords and keyphrases.

keyword research – the search for keywords related to your Web site, and the analysis

of which ones yield the highest return on investment (ROI).

keyword stuffing – the excessive, unnatural use of keywords on a web page for search

engine optimization purposes.

keywords tag – META tag used to help define the primary keywords of a Web page.

-L-

like-gate – a barrier requiring a user to "Like" a brand’s page before they can access

certain content from that brand on Facebook.

link building – the process of increasing the number of inbound links to a website in a

way that will increase search engine rankings.

link checker – tool used to check for broken hyperlinks.

link popularity – a measure of the quantity and quality of sites that link to your site.

link text – the text contained in (and sometimes near) a hyperlink.

linkbait – a piece of content created with the primary purpose of attracting inbound

links.

linkrot – when Web pages previously accessible at a particular URL are no longer

reachable at that URL due to movement or deletion of the pages.

log file – file that records the activity on a Web server.

long domain name – domain names longer than the original 26 characters, up to a

theoretical limit of 67 characters (including the extension, such as .com).

Page 16: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

-M-

manual submission – adding a URL to the search engines individually by hand.

media kit – a resource created by a publisher to help prospective ad buyers evaluate

advertising opportunities.

meta search engine – a search engine that displays results from multiple search engines.

META tag generator – tool that will output META tags based on input page information.

META tags – tags to describe various aspects about a Web page.

moderator – at a forum, someone entrusted by the administrator to help discussions

stay productive and within the guidelines.

mousetrapping – the use of browser tricks in an effort to keep a visitor captive at a site,

often by disabling the "Back" button or generated repeated pop-up windows.

multivariate testing – a method in marketing research where multiple variables in a

control scenario are simultaneously changed and the ensuing alternate strategies

tested, in order to improve the effectiveness of the final marketing strategy.

-N-

navigation – that which facilitates movement from one Web page to another Web page.

netiquette – short for network etiquette, the code of conduct regarding acceptable

online behavior.

network effect – the phenomenon whereby a service becomes more valuable as more

people use it, thereby encouraging ever-increasing numbers of adopters.

-O-

opt-in email – email that is explicitly requested by the recipient.

opt-out – (1) type of program that assumes inclusion unless stated otherwise. (2) to

remove oneself from an opt-out program.

organic search – the unpaid entries in a search engine results page that were derived

based on their contents’ relevance to the keyword query.

outbound link – A link to a site outside of your site.

-P-

page view – request to load a single HTML page.

pagejacking – theft of a page from the original site and publication of a copy (or near-

copy) at another site.

pass-along rate – the percentage of people who pass on a message or file.

Page 17: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

pay per click (PPC) – online advertising payment model in which payment is based solely

on qualifying click-throughs.

pay per click search engine (PPCSE) – search engine where results are ranked according

to the bid amount and advertisers are charged only when a searcher clicks on the search

listing.

pay per lead (PPL) – online advertising payment model in which payment is based solely

on qualifying leads.

pay per sale (PPS) – online advertising payment model in which payment is based solely

on qualifying sales.

payment threshold – the minimum accumulated commission an affiliate must earn to

trigger payment from an affiliate program.

permission marketing – marketing centered around getting customer’s consent to

receive information from a company.

podcast – a series of audio or video files that are syndicated over the Internet and

stored on client computing devices for later playback.

pop-under ad – an ad that displays in a new browser window behind the current

browser window.

pop-up ad – an ad that displays in a new browser window.

portal – a site featuring a suite of commonly used services, serving as a starting point

and frequent gateway to the Web (Web portal) or a niche topic (vertical portal).

-R-

rate card – document detailing prices for various ad placement options.

reciprocal links – links between two sites, often based on an agreement by the site

owners to exchange links.

rectangle ad – any one of the large, rectangular banner sizes suggested by the IAB.

rep firm – ad sales partner specializing primarily in single-site sales.

return days – the number of days an affiliate can earn commission on a conversion (sale

or lead) by a referred visitor.

return on investment (ROI) – the ratio of profits (or losses) to the amount invested.

rich media – new media that offers an enhanced experience relative to older,

mainstream formats.

run of network (RON) – ad buying option in which ad placements may appear on any

pages on sites within an ad network.

run of site (ROS) – ad buying option in which ad placements may appear on any pages of

the target site.

-S-

Page 18: Affiliate marketing guide 2013   mariliis uibomae - head of online marketing

search engine – a program that indexes documents, then attempts to match documents

relevant to the users search requests.

search engine optimization – the process of choosing targeted keyword phrases related

to a site, and ensuring that the site places well when those keyword phrases are part of

a Web search.

search engine spam – excessive manipulation to influence search engine rankings, often

for pages which contain little or no relevant content.

search engine submission – the act of supplying a URL to a search engine in an attempt

to make a search engine aware of a site or page.

search retargeting – the use of a site visitor’s search history as a basis for the ads that

the visitor will see.

search spy – a perpetually refreshing page that provides a real-time view of actual Web

searches.

self-serve advertising – advertising that can be purchased without the assistance of a

sales representative.

SERP – shorthand for a page of search engine listings, typically the first page of organic

results.

sig file – a short block of text at the end of a message identifying the sender and

providing additional information about them

skyscraper ad – an online ad significantly taller than the 120×240 vertical banner.

social networking – the process of creating, building, and nurturing virtual communities

and relationships between people online.

spam – inappropriate commercial message of extremely low value.

splash page – a branding page before the home page of a Web site.

sponsorship – advertising that seeks to establish a deeper association and integration

between an advertiser and a publisher, often involving coordinated beyond-the-banner

placements.

stickiness – the amount of time spent at a site over a given time period.

super affiliate – an affiliate capable of generating a significant percentage of an affiliate

program’s activity.

surround session – advertising sequence in which a visitor receives ads from one

advertiser throughout an entire site visit.

-T-

text ad – advertisement using text-based hyperlinks.

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text link exchange – network where participating sites display text ads in exchange for

credits which are converted (using a predetermined exchange rate) into ads to be

displayed on other sites.

title tag – HTML tag used to define the text in the top line of a Web browser, also used

by many search engines as the title of search listings.

trick banner – a banner ad that attempts to trick people into clicking, often by imitating

an operating system message.

two tier affiliate program – affiliate program structure whereby affiliates earn

commissions on their conversions as well as conversions of webmasters they refer to

the program.

-U-

underdelivery – delivery of less impressions, visitors, or conversions than contracted for

a specified period of time.

unique visitors – individuals who have visited a Web site (or network) at least once in a

during a fixed time frame.

URL – location of a resource on the Internet.

-V-

vertical banner – a banner ad measuring 120 pixels wide and 240 pixels tall.

viral marketing – marketing phenomenon that facilitates and encourages people to pass

along a marketing message.

vlog – a blog that publishes video content.

volunter directory – a Web directory staffed primarily by unpaid volunteer editors.

-W-

Web browser – a software application that allows for the browsing of the World Wide

Web.

Web design – the selection and coordination of available components to create the

layout and structure of a Web page.

Web directory – organized, categorized listings of Web sites.

Web hosting – the business of providing the storage, connectivity, and services

necessary to serve files for a website.

Web ring – a means for navigating a group of related sites primarily by going forward

and backward.

Web site traffic – the amount of visitors and vists a Web site receives.

Web site usability – the ease with which visitors are able to use a Web site.

whois – a utility that returns ownership information about second-level domains.

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word-of-mouth marketing – a marketing method that relies on casual social interactions

to promote a product.

WordPress – a popular content management system that is available as a hosted service

(wordpress.com) and self-hosted platform (wordpress.org).